/biz/ - Business & Finance

>>23350109

The dollar is allowed to be a non-gold-backed world-reserve currency only because of an anomalous historical circumstance. It was considered "as good as gold," i. e. convertible into gold, until 1971; then the U. S. did a rug-pull on the world, and said that it was now backed by nothing. People have since gone along with the dollar only as a temporary expedient. But the debt and disastrous economy of the U. S. now make that situation no longer tenable. Take away the dollar and we go back to what was previously money for 5000 years before it, gold. Nobody will ascribe any value to your currency unless you have gold; why would they. This is why so many countries have been hoarding it over the past decade. Russia could now create an entirely gold-backed currency (see picture), and China is suspected by Alasdair Macleod to have secreted away 20,000 tons of it. No currency can have credibility without gold (i. e. savings) backing it after the dollar dies.

>>23350109

The dollar is the world-reserve currency only because of an anomalous historical circumstance. It was considered "as good as gold," i. e. convertible into gold, until 1971; then the U. S. did a rug-pull, and said that it was now backed by nothing. Take away the dollar and we go back to what was previously money for 5000 years before it, gold. Nobody will ascribe any value to your currency unless you have gold; why would they. This is why so many countries have been hoarding it over the past decades. Russia could now create an entirely gold-backed currency (see picture), and China is suspected by Alasdair Macleod to have secreted away 20,000 tons of it. No currency can have credibility without gold (i. e. savings) backing it after the dollar dies.